Q-Strategy: A Bidding Strategy for Market-Based Allocation of Grid Services
OTM '08 Proceedings of the OTM 2008 Confederated International Conferences, CoopIS, DOA, GADA, IS, and ODBASE 2008. Part I on On the Move to Meaningful Internet Systems:
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The "ZIP" adaptive automated trading algorithm has been shown to outperform human traders in experimental studies of continuous double auction (CDA) markets populated by mixtures of human and "software robot" traders. This paper introduces a more sophisticated version of the ZIP algorithm, called ZIP60 because it requires the values of 60 parameters to be set correctly. ZIP60 is shown here to produce significantly improved results in comparison to the original ZIP algorithm (called "ZIP8" hereafter). A genetic algorithm is used to search the 60-dimensional parameter space, and it finds parameter values that yield ZIP60 traders with mean scores that are significantly better than those of ZIP8s. Principal component analysis of the best evolved ZIP60 parameter-sets establishes that no ZIP8 solutions are embedded in the 60-d space. Moreover, the results presented here cast doubt on earlier ZIP8 results concerning the evolution of new 'hybrid' auction mechanisms that appeared to be improvements on the CDA.